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February 24, 2023

MT436-4: Apply analytical methods to increase purchasing effectiveness.

Part 1

Before negotiating prices with suppliers and setting prices for your own products, it is necessary to analyze the various pricing methods that companies commonly employ. Provide examples of suppliers or industries that are currently utilizing a price volume model, market share model, competition pricing model, and revenue pricing model. Clearly describe each supplier or industry and explain why you feel they use that specific pricing methodology. Then, describe your own company and for one of the products, and analyze which pricing methodology would fit best. Are they currently using the methodology you picked?

Part 2

There are various methods available to the manager for analyzing the supply chain effectiveness and discovering ways to increase effectiveness. Your book discusses a selection of these in Chapter 12 (project management, learning curve analysis, value analysis, process mapping, and value stream mapping). Select the one that best fits your organization’s situation and needs. Then, write a short proposal to your manager explaining in detail how this methodology might be used to improve effectiveness. Include the following elements in your proposal:

To what process/product this would be applied

What would the goals be?

Details on the analysis using the concepts described in the chapter

Who would be involved in this effort?

Requirements (data, funds, expertise, etc.)

How success would be measured? (Describe at least two metrics.)

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